MNI BRIEF:Carney-Limit To Dollar-For-Dollar Tariff Retaliation
MNI (LONDON) - New Canadian Prime Minister Mark Carney said Monday his country will face limits on matching any further U.S. tariffs dollar-for-dollar, one of the first indications of how he will manage the conflict between two of the world's largest trade partners.
“There is a limit to matching these tariffs dollar for dollar given that our economy is a tenth of the size of the United States,” because such action will become "harmful," the former BOC and BOE Governor told reporters in London. Carney also said tariff revenue will go to helping workers hurt in the trade conflict.
Carney also elaborated on his request that emerged Friday for the defense minister to review whether to proceed with the full contract to buy U.S. F-35 fighter jets. He said the "geopolitical situation" has changed recently, and noted 80% of Canada's defense spending already goes to U.S. contractors. (See: MNI: Carney To Take On Trump, Be Fiscally Cautious - Ministers)